Are driver-facing cameras becoming a necessity?
Trucking Industry expert and Learning Without Scars guest writer Bob Rutherford shares an article this week by Angela Coker Jones. In the trucking industry, one potential safety tool is hotly debated: are driver-facing cameras becoming a necessity?
Dash cameras have been on the market for years now – many of which offer a driver facing video solution in addition to road facing video, which has become pretty standard in the cab of a truck as fleets seek to improve safety, exonerate themselves in accidents and lower insurance costs.
Inward-facing cameras are still very much a novelty, said CarriersEdge President Mark Murrell. According to data from the annual CarriersEdge Best Fleets to Drive For survey and contest, only 21% of finalists use inward-facing cameras.
“It’s got a long way to go before people get comfortable with those,” Murrell said.
It’s no secret that most drivers don’t like driver cameras. Some fleets have chosen to invest in them anyway because of their safety benefits, and many have been successful in gaining driver approval. But driver satisfaction, privacy, and the fear of losing drivers when seats are already hard to fill has led some to avoid them.
Boyle Transportation and Skelton Truck Lines, sister companies owned by Andlauer Healthcare Group, are two carriers that have chosen to forego the driver-facing camera – at least in their over-the-road operations. The companies do use driver-facing cameras in trucks that run local routes, but much of their OTR driver population consists of women, which has led the companies to eschew them out of respect for their women drivers’ privacy concerns.
Mike Lasko, vice president of safety at Boyle and Skelton, said he would like to have driver cameras in the OTR fleet, but there are no plans whatsoever to install them.
“But that’s entirely driven by our safety performance,” Lasko said. “We have an industry-leading safety record. If that wasn’t the case – all of a sudden, if we went from first to last – that might be a different conversation, but we’re not experiencing any need to invest in that as of right now.”
The companies originally invested in side-view cameras before adding road-facing cameras to their fleets. Lasko said they were experiencing a high volume of pedestrian vehicles sideswiping their trucks. In one instance, he had a man call the number on the back of a truck and say one of their drivers came into his lane, causing him to run into a side rail. The camera showed the man was actually texting and driving.
Exoneration, Lasko said, was the driving factor that led the companies to invest in camera technology in the first place.
“The police show up and, of course, everybody’s story is the big bad truck changed lanes and hit me,” he said. “Almost overnight, once we deployed the cameras, we were able to exonerate ourselves from all kinds of false claims.”
Most carriers launched their foray into cameras with dashcams. That’s what Garner Trucking did about three years ago. Garner Trucking Chief Operating Officer Tim Chrulski said they “ripped the band-aid off” and implemented a dual driver- and road-facing camera all at once rather than testing an outward video solution first to see how it would go.
And he swears by the driver-facing feature. A big reason for that is because the camera system Garner uses – like most others – provides driver alerts that help the driver self-coach and improve poor driving habits they may not have otherwise realized they had developed.
He said most behaviors can be easily corrected. In the event of habitual poor driving maneuvers or an accident, Garner uses the driver-facing video not to punish a driver but to coach them based on their actions.
“The whole (saying) perception is reality; that perception in that moment of having an accident may be well off from the reality of what actually happened,” Chrulski said. “For a driver to be able to see and acknowledge that this was a situation that could have been corrected, there’s no better training. We all learn from our own mistakes, our own errors, so I think it’s a positive thing. It doesn’t have to be a negative thing.”
Silvia Mesina, director of safety at Real Trucking, agreed. She said her company uses cameras to proactively address potential safety hazards before they escalate into accidents by monitoring driver behavior like distracted driving, drowsiness, or aggressive behavior, for example.
Real has also implemented road-facing, side-view, and backup cameras. The side-view and backup cameras were installed to give drivers greater visibility, eliminating blind spots and mitigating backing accidents during the drop-and-hook process. The company recorded thirty-seven backing accidents in 2019. Near the end of that year, backup cameras were installed on a portion of the fleet, and by 2021, Mesina said that number had almost halved to nineteen.
She said while these auxiliary cameras help drivers enhance their road safety awareness and accident prevention skills, those additional views can’t replace the value of driver-facing cameras.
“Driver-facing cameras are crucial for driver safety,” she said. “These cameras play a crucial role in enhancing driver safety by providing invaluable insights into driver behavior.”
But Lasko said there are other safety systems that can provide insight into driver behavior without recording them. He said it depends on the type of advanced driver-assistance systems (ADAS) a fleet has in place. They “have all the ADAS” at Boyle, so a driver camera is redundant, he said.
“ADAS will tell you if the driver was paying attention,” Lasko said. “Sure, I can have a video of them being distracted, or I can just figure it out from the data that we have from all the other active safety systems.”
But if a company is light on ADAS, he said a driver camera is a good option.
In addition to exoneration and driver coaching, Murrell said driver cameras are becoming pertinent to insurance operations to explain why a company is a good risk as they use the insights into driver behavior to paint a picture of a company’s safety culture, which can be invaluable in the event of an accident.
“This is just my opinion, but if you’re a carrier operating with cameras, and you’re [only] using an outward-facing camera and side cameras, you’re only getting 70% to 75% of the story,” Chrulski said. “There’s another 25% that happens in the cab, and if you need to be able to defend the driver, defend the organization, you need to have 100% of the information.”
Angel Coker Jones is a senior editor of Commercial Carrier Journal, covering the technology, safety, and business segments. In her free time, she enjoys hiking and kayaking, horseback riding, foraging for medicinal plants and napping. She also enjoys traveling to new places to try local food, beer, and wine. Reach her at An********@***********ly.com.
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Navigating Risk Management in Today’s Construction Industry
Navigating Risk Management in Today’s Construction Industry
Today, we continue with guest writer Andy Fanter in his article on “Navigating Risk Management in Today’s Construction Industry.”
The construction industry is changing fast, and so is how we handle risk. Andy Fanter dives into this shift, pointing out a generational gap that’s reshaping things. While older folks were more into taking risks, the younger crowd is playing it safe. This cautious vibe, mixed with dealership consolidation and financial conservatism over the last 15 years, has made sales of new and used equipment more complex and frustrating.
Fanter stresses the importance of planning ahead and assessing risks to reduce headaches across departments. His approach to managing sales risks at equipment dealerships involves pinpointing the best-selling products and boosting orders to meet demand, much like Starbucks expanding its product lineup. Using data analytics, dealerships can better understand market trends, which can help keep customers happy and grow market share.
A standout example of this shift is the parts department losing market share—from over 80% in the 1970s to just 40% in 2020. Fanter blames this drop on poor dealer performance and tracking, showing how crucial parts and service are for customer satisfaction and profits. He believes focusing on these areas, rather than just equipment sales, is key to staying competitive.
Fanter also calls for fresh thinking and risk-taking from industry leaders. Despite tech advances, productivity is lagging, so a new perspective is needed. He suggests looking into the underused subscription service model for machinery as a possible game-changer.
Sharing personal experience, Fanter highlights the need for resilience amid criticism and the challenges of business consolidation. He stresses strong communication and relationships, suggesting more sales reps to handle increasing traffic and road construction issues. A friend’s success story supports this, where hiring more staff improved sales.
Technology and data analysis are crucial for understanding sales trends and optimizing revenue with strategic pricing. Fanter critiques manufacturers for past price hikes that hurt margins, advocating for analytics to boost dealer transactions and customer retention. He even suggests creative distribution methods, like drop boxes for inventory, to overcome dealer pushback. By focusing on dealership profit drivers and continuous evaluation, businesses can adapt to changing environments. This adaptability is also relevant to the electric vehicle sector and the environmental concerns surrounding lithium batteries, pushing companies to use dealer data for sustainable growth.
The pandemic has brought back in-person meetings and revamped training programs with voice recognition tech. An engaging teaching method has students defining key management concepts and tackling questions about ignorance, stupidity, and insanity in management, emphasizing the risks of stagnation and the need to stay adaptable.
Fanter also touches on job issues related to new U.S. computer chip plants and the nuclear energy revival, along with challenges in clean energy regulations and high energy loss during transmission. Economic signs show a rise in housing permits, driven by young adults wanting customizable new homes. This trend encourages builders to offer flexible options, ultimately benefiting the equipment industry as single-family homes increase.
In summary, Andy Fanter’s insights offer a clear guide for navigating the new era of risk management in construction. By adopting innovative strategies, using technology, and building resilience, businesses can thrive amid change and uncertainty. As the industry evolves, so must our approach to risk, ensuring we’re not just ready for the future but actively shaping it.
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A Candid Conversation with Andy Fanter
A Candid Conversation with Andy Fanter
On the Learning Without Scars Podcast, we just had a candid conversation with Andy Fanter. Andy Fanter started Intercast in 1994. The company is a division of Cyclcast, created in 1978 by Dick Fanter. Dick retired in 2019. Andy currently forecasts for over thirty dealers across the US. In his free time, he enjoys the stock market and fishing.
Risk and Generational Shifts
The construction industry is witnessing a fascinating transformation in attitudes toward risk. Andy Fanter’s analysis reveals a noticeable shift from the older generation’s penchant for risk-taking to the younger generation’s more cautious stance. This evolution is shaping how businesses strategize, plan, and execute their operations.
The conservative financial goals that have emerged from dealership consolidation over the past 15 years have added layers of complexity to sales dynamics, especially between new and used equipment. Proactive planning and robust risk assessment are becoming indispensable tools to mitigate interdepartmental frustrations.
Strategies for Success
Fanter suggests a keen focus on identifying top-performing products and boosting inventory to meet customer demand, drawing parallels with Starbucks’ successful product expansion. This approach not only meets demand but also enables sales personnel to bundle complementary items, enhancing customer satisfaction. Leveraging data analytics to gain insights into market dynamics is crucial, especially when customer retention and market share are at stake.
The Market Share Conundrum
A striking example of the industry’s challenges is the decline in OEM Dealer parts department market share, from over 80% in the 1970s to around 40% in 2020. This downturn is attributed to poor dealer performance and inadequate measurement.
Despite maintenance efforts, equipment breakdowns persist, underscoring the importance of prioritizing parts and service for customer satisfaction and profitability over merely focusing on equipment sales.
Embracing Innovation
Fanter calls for bold, innovative thinking among industry leaders, particularly in adopting underutilized subscription service models for machinery. His experiences highlight the resilience required to navigate criticism and manage travel expenses amid business consolidation. Building strong communication and relationships is key, as demonstrated by a friend’s successful strategy of hiring additional staff to boost sales performance.
Harnessing Technology and Data
Technological advancements in computing and data analysis are revolutionizing sales strategies and revenue enhancement through strategic pricing. Fanter critiques manufacturers for excessive price increases in the 1970s, which led to unnoticed margin drops. He advocates for the strategic use of analytics to improve dealer transactions and customer retention. Innovative distribution strategies, like drop boxes for inventory, are proposed, though they face resistance from dealers.
Adapting to Change
In the face of environmental concerns and shifts in the electric vehicle sector, Fanter urges businesses to adapt by utilizing dealer data effectively. The pandemic has also prompted a return to in-person meetings and revamped training programs, with voice recognition technology enhancing learning experiences. Engaging teaching methods encourage students to define key management concepts and address the pitfalls of ignorance, stagnation, and adaptability.
Economic and Market Trends
Employment challenges related to new U.S. computer chip plants and the revival of nuclear energy highlight the ongoing clean energy debate. Economic indicators suggest a rise in housing permits, driven by young adults, with demographic shifts pointing to a preference for customizable new homes. This trend offers opportunities for builders to provide flexible options and for the equipment industry to thrive.
What should we do now?
As we navigate these dynamic times, the construction industry stands at a crossroads of risk and innovation. Embracing change, leveraging technology, and prioritizing customer satisfaction are vital for future success.
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Why Equipment Dealers Should Rely on an Agency
Why Equipment Dealers Should Rely on an Agency
Guest writer Debbie Frakes returns this week with a blog post that covers why equipment dealers should rely on an agency.
In today’s fiercely competitive equipment dealer landscape, a consistent influx of new business is vital for the health and longevity of your operation. With contractors and construction firms having numerous choices for equipment, parts, service, and rentals, how can your dealership stand out from the crowd?
The solution is a well-planned, consistently executed marketing strategy. However, equipment dealers often struggle to allocate sufficient time and resources to marketing efforts because of the demands of their daily operations. That’s where using a full-service marketing agency specializing in equipment dealer marketing is invaluable.
Key advantages of partnering with a comprehensive marketing agency
Data Driven Outcomes—Winsby provides regular key metrics reports to track campaign performance, offering tangible evidence of effectiveness and enabling data-based decision-making.
By collaborating with a full-service marketing agency well versed in equipment dealer businesses, you can develop a robust strategy that drives sales and supports long term growth. The expertise of an agency like Winsby ensures your dealership remains competitive in a saturated market, consistently attracting new customers while retaining existing ones.
Contact Winsby today to see how a full-service marketing agency can boost your equipment dealership’s performance and drive sales!
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The Invisible Hand
The Invisible Hand
It’s not a conspiracy against you – it’s an algorithm at work. Guest writer John Anderson returns this week with his blog post, “The Invisible Hand: How People Over 50 Are Caught in the Algorithmic Web, and Don’t Even Know It.”
Picture this: You hop onto YouTube to find a tutorial on fixing that leaky faucet. Seems innocent enough, right? Twenty minutes later, you’re deep into a video about backyard survival techniques, and an hour after that, you’re convinced you need to start stockpiling canned goods because “Big Water” is coming for your taps. What happened? You fell into the algorithmic rabbit hole—where fixing a faucet turns into prepping for the apocalypse.
If you’re over 50, welcome to the club. You may not realize it, but you’re living inside a web spun by algorithms designed to keep you glued to the screen, showing you exactly what the platforms *think* you want to see. Spoiler alert: It’s not always what you need.
What’s an Algorithm Anyway?
An algorithm is basically a set of instructions that help computers organize vast amounts of information. In the digital world, they’re used to decide what videos you watch, what ads you see, and even which long-lost friend from high school shows up in your Facebook feed. Think of them like that nosy neighbor who always seems to know what you’re up to, but instead of bringing over a casserole, they’re serving you videos of conspiracy theories or cat memes (depending on your browsing habits, of course).
Living Inside the Algorithm—Or Why You Can’t Stop Watching Cute Animal Videos
If you grew up in a time when rotary phones and the encyclopedia were your go-to information sources, the idea of algorithms shaping your life may sound far-fetched. But here’s the reality: The moment you start interacting with content—whether you’re Googling how to use your phone’s camera (again) or watching an *adorable* puppy rescue on YouTube—the algorithm takes note. It’s like a waiter who remembers your order so well that they start bringing you dessert before you’ve even looked at the menu.
And the more you engage with what’s served up, the more the algorithm fine-tunes its recommendations. Before you know it, you’re in a never-ending loop of “related” content that aligns with your preferences, reinforces your opinions, and keeps you locked in place. It’s like the algorithm is your personal content butler—except instead of refilling your drink, it’s refilling your biases.
Example: YouTube’s Slippery Slope (Not the Fun Kind)
Let’s say you start watching DIY videos to learn how to fix your kitchen sink. Seems harmless enough, right? Well, the algorithm doesn’t stop there. Soon, you’re recommended videos on home renovations, then on flipping houses, then on economic downturns, and suddenly you’re convinced the world is ending, and it’s time to invest in bunkers and gold. You started with a leaky faucet and ended up questioning the future of society. And you haven’t even fixed the sink yet!
That’s the power of YouTube’s algorithm. It’s designed to keep you watching, and it knows that controversy, fear, and extreme content keep eyeballs on screens. So instead of recommending a nice, balanced series of videos, it feeds you content that gets more and more sensational. You think you’re learning, but really, you’re being sucked into a vortex of clickbait—and no, it doesn’t involve a life jacket.
It’s Not Just YouTube and Facebook: Other Traps in Daily Life
It’s not just YouTube, Facebook, or the web where you get entangled in the algorithmic web. Simple activities like signing up for rewards programs, using loyalty cards, or even just shopping with store or credit cards feed the same invisible algorithmic hand. Take grocery stores, for example: that innocent little loyalty card you swipe every time you buy groceries doesn’t just give you discounts—it tracks your every purchase. Algorithms analyze your buying habits, predicting when you’ll need another gallon of milk or that next box of cookies, and then boom! You start seeing online ads for your favorite snacks before you even think about going back to the store.
Example: Let’s say you use your credit card at a clothing store. The purchase data doesn’t just stay there. It may be shared with third-party marketers who start showing you ads for shoes, jackets, and other items you hadn’t planned to buy. Suddenly, you’re in a digital shopping spiral, thanks to the algorithm’s ability to predict and shape your purchasing behavior. What started as a quick trip to get socks has led you down a consumerist rabbit hole.
Why We Stop Thinking Critically: “If It’s Online, It Must Be True… Right?”
Remember when you were told to “question everything” in school? Yeah, that lesson kind of goes out the window when you’re on the internet, thanks to the algorithm. When all the content you see confirms what you already believe, it’s easy to forget how to think critically. It’s like your brain goes on autopilot, nodding along to everything on your screen.
And let me tell you, this hits close to home. I have a friend, let’s call him Randy. Now, I have immense respect for Randy—he’s one of the handiest handy people I’ve ever known. He could build a shed, fix a car, and probably construct a bridge with nothing more than a Swiss Army knife and some duct tape. But here’s the problem: Randy has been exploited by the algorithm. He’s fallen deep into believing some of the wildest things being shared on Facebook. It hurts because I believe Randy is a good person with strong opinions, but he’s being taken advantage of, his beliefs hijacked by sensationalized and misleading content. The algorithm has gotten its hooks into him, and it’s hard to pull someone back from that once they’ve gone down the rabbit hole.
And it’s not just Randy. Anyone can fall into the algorithm’s trap. Let’s take Elaine, a retired educator with a background deeply rooted in critical thinking. She specialized in the most subjective, critical subject, ART! She has a stable home life, a wonderful husband, terrific kids, and is a super grandmother. In fact, you’d be hard-pressed to find a more stable, intelligent person. But then, out of nowhere, she blurts out a conspiracy theory backed up by propped-up ‘facts’ from a dubious web article or a questionable news source that leans one way. You can’t help but wonder: how do you stop yourself from shaking them and saying, “Wake up! You’re caught in the algorithm!” She’s gone from being a pillar in the education of others to a pawn in the algorithm’s game.
The Real-World Fallout: Losing Friends Over a Facebook Meme
We’ve all heard the horror stories: friends unfriended over political posts, family group texts exploding over conspiracy theories, Thanksgiving dinners that turn into mini-civil wars. Believe it or not, algorithms are partially to blame for the great “Facebook Fallouts” that have been ripping families and friendships apart.
You see, when algorithms keep feeding you content that reinforces your worldview, it becomes harder to relate to people who see things differently. It’s like showing up to a dinner party wearing a tinfoil hat and expecting everyone to compliment your fashion sense. And when your friends and family challenge your newfound beliefs—beliefs that have been neatly curated and packaged for you by YouTube or Facebook—it’s easy to write them off as “uninformed” or “brainwashed.”
Spoiler: They’re probably thinking the same thing about you.
Can We Fix This? Or Are We All Doomed to Fight with Aunt Karen Forever?
Good news! You can totally fight back against the algorithm (and hopefully save Thanksgiving dinner in the process). Here are a few strategies to help:
– Ask “Wait, Really?” More Often: When you come across something online that gets you all riled up, take a moment to pause. Ask yourself, “Is this actually true? Or is this just a clickbait trap?” Spoiler alert: It’s often the latter.
– Break Out of Your Bubble: Challenge yourself to read articles or watch videos that come from a different perspective. Yeah, it might be uncomfortable, but it’s like eating your veggies—good for you in the long run.
– Manual Search > Algorithmic Suggestions: Instead of clicking on YouTube’s recommended videos or relying on Facebook’s “Top Posts,” take control of your own searches. Look up things on your own, like a grown-up.
– Fact-Check Like It’s 1999: Before you share that article with a headline that says, “Scientists discover tomatoes cure insomnia!”—do a quick fact-check. Turns out, tomatoes don’t cure insomnia, and neither does most of the clickbait circulating online.
Final Thoughts: Stay Sane in the Algorithmic Age
Sure, the algorithm is a tricky little devil, but with a little awareness and a healthy dose of skepticism, you can reclaim your brain and think critically again. Don’t let the endless supply of “related” videos and emotional social media posts turn you into a mindless drone who believes anything the internet throws your way. The algorithm might know what you *want* to see, but that doesn’t mean it’s what you *should* see.
So go ahead, fix that faucet—just be careful not to fall into the doomsday prepper videos afterward. Remember to ask yourself if you are in the algorithm or thinking for yourself. And if you find yourself getting into a heated Facebook debate with Aunt Karen (or Randy), remember: It’s probably not worth it. At the end of the day, the algorithm doesn’t care about family peace. But you should. And as for Elaine, maybe next time, ask her to fact-check before Thanksgiving. It might save the turkey and the family reunion!
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Chipotle, Starbucks, and the Huge Construction Machinery Dealers
Chipotle, Starbucks, and the Huge Construction Machinery Dealers
Guest writer Andy Fanter dives into the cross-industry pool with today’s blog post: “Chipotle, Starbucks, and the Huge Construction Machinery Dealers.”
Starbucks has been struggling. Plenty of national chains and local competitors are offering coffee and related snacks. Chipotle has been growing for years with a simple model. Come make your burrito or bowl and order a high margin drink. We are not cheap, and do not study the calories and sodium too much. Fresh ingredients taste good, and people come to get it for lunch and dinner. Starbucks hired CEO Brian Niccol from Chipotle to fix the problem. His solution: reduce the menu and make stores less chaotic. Sell hot and cold coffee drinks and related snacks—and be faster. The best products….faster.
How does this apply to the construction machinery dealer? I have been in this business 30 years, and around it since the late 1970s. Consolidation has made dealers excessively big; billion dollars in revenue surprises no one anymore. Smaller competitors chip away at market shares—sound familiar, Starbucks. Dealer reaction, flat forecasts to stay big. The US economy and construction are expanding 85% of the time. Why not order more of the best 10 to 15 products expecting to grow those sales by 10% next year?
Here is what I am seeing with flat forecasts. Get into spring and dealer needs more machines—months from manufacturer, standard. Neighboring dealer-takes top management time to negotiate a deal. Buy used equipment for rental fleet and sell from rental fleet. Now the used division is not happy having to add to the rental fleet instead of to customers. Product support starts to get busier and trying to get used machines ready for rental fleet. The rental reps are not happy because good machines are being sold. Finally, the regular field sales force is unhappy because there are not enough of the best machines to go around. A year spent holding, or likely slipping in market share. The sales force does best when they have the best items to offer customers.
The machinery dealer needs to be a mix of Starbucks and Chipotle. Manufacturers and customers insist on a wide range of products, and locations—a little chaotic like Starbucks. Dealers know the hot models that their customers prefer. Have plenty of those, new, and ready to go—Chipotle model.
It is much easier for the reps to get more deals for a variety of products when they do not have to account for long delays on the best products. What happens if you order too much? Dealer trades and adds to the rental fleet.
Just like Starbucks manages through the chaos.
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People…
People…
Guest writer Andy Fanter returns tonight with a blog about people…not to worry, it’s a good thing. Connections and relationships with people matter, at work or outside of it.
Back in 2018 I hunted with a friend who manages thousands of acres for non-resident landowners. This involves mowing, planting food plots, building duck and deer blinds, airport transportation, caring for homes clients buy in area. My friend needed a strong number two, and I convinced him to hire a friend in the business that was looking to make a move. This year, my friend fired my friend—not surprised the guy he hired is good with people and good with the field work, and my friend hiring was more interested in “ labor” not a leader. I had not talked to my “ hired friend “ since 2020, but when his wife texted me the news that he was fired last week—I responded, “ Can I fix it? “ I was willing to make a two-hour drive to see if I could repair it—the consultant in me. My skilled friend already has another management job, so my offer was not needed.
Last week had me driving to take care of some business. I passed a recent ex-client headquarters enroute, but coming back I was passing it at 10 minutes before noon. I know my ex-client pretty well, we are even friends, I stopped and asked the front desk if he was around. She said “maybe,” and a successful hunt for him started. She was shocked that I just took a chance to see if he was around, but I have known this person 25 years. My friend was happy to see me, bought lunch, and our business relationship mended. We got caught up on 18 months of news. Some may know the name of the client—yes, we are both Gen X and more than a little opinionated!
Well great Andy—there are three people on earth who do not use a cuss word before your name….what does this have to do with construction machinery business and dealers? Never get too big, too mad, or too distant to try and help people. I say it often; the toughest clients to get are the ones you lost. But have you tried getting them back?
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Navigating hidden fees in transportation fleet leasing agreements
Navigating hidden fees in transportation fleet leasing agreements
Trucking Industry expert Bob Rutherford shares an article from Brian Antonellis on the financial side of the industry: “Navigating hidden fees in transportation fleet leasing agreements.”
Throughout 2024, one of the most discussed topics across industries has been “hidden fees.” Both consumers and businesses are increasingly frustrated with the lack of transparency in pricing, pushing companies in various sectors to reconsider their fee structures. While businesses like hotels and rental car companies, have begun disclosing add-on charges to be more transparent, the prices we see advertised often don’t reflect what we actually end up paying – a challenge that’s particularly significant for companies managing heavy-duty transportation fleets.
These hidden fees pose a major challenge for companies that operate heavy-duty transportation fleets and their leasing structures, especially those locked into a “Full-Service Lease”. As these fees continue to grow, companies are becoming more aware of their impact on financial stability, and they are seeking alternative leasing options that offer greater transparency and cost efficiency.
While some argue that fees are necessary to cover operational costs and clarify where money is spent, the reality is that hidden fees, often referred to as secondary fees, can significantly affect how much consumers and businesses ultimately pay. According to the Consumer Financial Protection Bureau (CFPB), these fees not only inflate costs, but also hinder the ability of businesses to make informed financial decisions. CFPB data suggests that because these fees are hidden, companies often pay more than what would be expected if all costs were upfront and transparent.
The current white house administration has prioritized addressing hidden fees, commonly referred to as “junk fees” estimating that Americans collectively pay over $90 billion annually in these charges. Legislative efforts are also gaining traction, with bills introduced to curtail excessive and unnecessary fees. States like New York, Illinois, and California have begun implementing regulations aimed at curbing these hidden fees across various industries, including restaurants and other service sectors.
The hidden cost of fees in fleet management.
Although hidden fees have recently gained widespread attention, the issue has been brewing for years, particularly since the pandemic. The need for flexibility and agility became paramount in fleet management, making it crucial for companies to scrutinize every detail of their fleet’s vehicle lease structure. This close examination became a deciding factor in whether businesses could maintain profitability amid changing economic conditions.
During the pandemic, the ability to scale fleet size in response to fluctuating demand was essential. This flexibility required lease agreements that could adapt to changing needs, such as a Sale-Leaseback option.
However, hidden fees within Full-Service Leases have only compounded these challenges, highlighting the importance of transparency in fleet leasing.
Understanding full-service leasing.
A Full-Service Lease is an agreement where the lessor bundles financing and various transportation services into a single monthly payment
While this might appear convenient it often results in a lack of flexibility for the lessee. These contracts typically lock businesses into long-term commitments with combined costs for maintenance, finance, and other administrative fees, making it difficult to adjust to changing operational needs.
The case for unbundled leasing
On the other hand, Unbundled Lease (UBL) agreements offer a more flexible alternative. These agreements break down costs individually, allowing companies to identify and control the lowest possible expenses associated with fleet management.
UBLs provide financing options based on actual costs, rather than estimates made at the beginning of the lease term. This approach also supports better vehicle life cycle management, optimizing both costs and performance. With a UBL, companies gain the freedom to scale their fleet size and upgrade vehicles as needed, ensuring that they only pay for what they use. This flexibility often translates into significant cost savings when compared to the rigid structure of a Full-Service Lease.
Calculating the savings with unbundled leasing.
After accounting for lease payments, maintenance fees and warranties, a company could save significantly with a UBL. For instance, a fleet of 100 trucks might save $1.04 million in the first year alone by opting for an unbundled lease structure, with monthly costs averaging $2,054.00 per truck compared to $2,921.00 under a Full-Service Lease.
Maintenance and repair costs based on lease structure.
One of the key differences between a UBL and FSL is how maintenance and repair (M&R) costs are calculated. Full-Service Leases often “front-load” these costs, meaning companies pay more upfront regardless of actual usage. In contrast, unbundled agreements allow companies to manage these costs more effectively, typically resulting in lower expenses over time.
For example, under a Full-Service Lease, a company might pay a fixed fee plus mileage charges from the start and in the early usage of the asset, without benefiting from manufacturer warranties or cost reductions over time. However, with a UBL, maintenance costs can be significantly lower, with companies only paying for the services they actually need. This can lead to additional savings, particularly in areas like tire replacement, where costs can add up quickly.
Beyond maintenance, other aspects of fleet management are also affected by hidden fees.
Original equipment costs under Full-Service Leases are often higher, and additional administrative fees can vary based on location. Fuel costs can also become less transparent, with bundled services making it difficult to track true expenses.
For companies operating large transportation fleets, understanding and mitigating these hidden fees is crucial for maintaining a healthy bottom line. As the industry continues to evolve, organizations with transportation fleets must stay vigilant in managing their Total Cost of Ownership to ensure they are operating as efficiently as possible.
Brian Antonellis, CTP, is Senior Vice President of Fleet Operations at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and life cycle cost management. For more information visit www.FleetAdvantage.com.
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Are driver-facing cameras becoming a necessity?
Are driver-facing cameras becoming a necessity?
Trucking Industry expert and Learning Without Scars guest writer Bob Rutherford shares an article this week by Angela Coker Jones. In the trucking industry, one potential safety tool is hotly debated: are driver-facing cameras becoming a necessity?
Dash cameras have been on the market for years now – many of which offer a driver facing video solution in addition to road facing video, which has become pretty standard in the cab of a truck as fleets seek to improve safety, exonerate themselves in accidents and lower insurance costs.
Inward-facing cameras are still very much a novelty, said CarriersEdge President Mark Murrell. According to data from the annual CarriersEdge Best Fleets to Drive For survey and contest, only 21% of finalists use inward-facing cameras.
“It’s got a long way to go before people get comfortable with those,” Murrell said.
It’s no secret that most drivers don’t like driver cameras. Some fleets have chosen to invest in them anyway because of their safety benefits, and many have been successful in gaining driver approval. But driver satisfaction, privacy, and the fear of losing drivers when seats are already hard to fill has led some to avoid them.
Boyle Transportation and Skelton Truck Lines, sister companies owned by Andlauer Healthcare Group, are two carriers that have chosen to forego the driver-facing camera – at least in their over-the-road operations. The companies do use driver-facing cameras in trucks that run local routes, but much of their OTR driver population consists of women, which has led the companies to eschew them out of respect for their women drivers’ privacy concerns.
Mike Lasko, vice president of safety at Boyle and Skelton, said he would like to have driver cameras in the OTR fleet, but there are no plans whatsoever to install them.
“But that’s entirely driven by our safety performance,” Lasko said. “We have an industry-leading safety record. If that wasn’t the case – all of a sudden, if we went from first to last – that might be a different conversation, but we’re not experiencing any need to invest in that as of right now.”
The companies originally invested in side-view cameras before adding road-facing cameras to their fleets. Lasko said they were experiencing a high volume of pedestrian vehicles sideswiping their trucks. In one instance, he had a man call the number on the back of a truck and say one of their drivers came into his lane, causing him to run into a side rail. The camera showed the man was actually texting and driving.
Exoneration, Lasko said, was the driving factor that led the companies to invest in camera technology in the first place.
“The police show up and, of course, everybody’s story is the big bad truck changed lanes and hit me,” he said. “Almost overnight, once we deployed the cameras, we were able to exonerate ourselves from all kinds of false claims.”
Most carriers launched their foray into cameras with dashcams. That’s what Garner Trucking did about three years ago. Garner Trucking Chief Operating Officer Tim Chrulski said they “ripped the band-aid off” and implemented a dual driver- and road-facing camera all at once rather than testing an outward video solution first to see how it would go.
And he swears by the driver-facing feature. A big reason for that is because the camera system Garner uses – like most others – provides driver alerts that help the driver self-coach and improve poor driving habits they may not have otherwise realized they had developed.
He said most behaviors can be easily corrected. In the event of habitual poor driving maneuvers or an accident, Garner uses the driver-facing video not to punish a driver but to coach them based on their actions.
“The whole (saying) perception is reality; that perception in that moment of having an accident may be well off from the reality of what actually happened,” Chrulski said. “For a driver to be able to see and acknowledge that this was a situation that could have been corrected, there’s no better training. We all learn from our own mistakes, our own errors, so I think it’s a positive thing. It doesn’t have to be a negative thing.”
Silvia Mesina, director of safety at Real Trucking, agreed. She said her company uses cameras to proactively address potential safety hazards before they escalate into accidents by monitoring driver behavior like distracted driving, drowsiness, or aggressive behavior, for example.
Real has also implemented road-facing, side-view, and backup cameras. The side-view and backup cameras were installed to give drivers greater visibility, eliminating blind spots and mitigating backing accidents during the drop-and-hook process. The company recorded thirty-seven backing accidents in 2019. Near the end of that year, backup cameras were installed on a portion of the fleet, and by 2021, Mesina said that number had almost halved to nineteen.
She said while these auxiliary cameras help drivers enhance their road safety awareness and accident prevention skills, those additional views can’t replace the value of driver-facing cameras.
“Driver-facing cameras are crucial for driver safety,” she said. “These cameras play a crucial role in enhancing driver safety by providing invaluable insights into driver behavior.”
But Lasko said there are other safety systems that can provide insight into driver behavior without recording them. He said it depends on the type of advanced driver-assistance systems (ADAS) a fleet has in place. They “have all the ADAS” at Boyle, so a driver camera is redundant, he said.
“ADAS will tell you if the driver was paying attention,” Lasko said. “Sure, I can have a video of them being distracted, or I can just figure it out from the data that we have from all the other active safety systems.”
But if a company is light on ADAS, he said a driver camera is a good option.
In addition to exoneration and driver coaching, Murrell said driver cameras are becoming pertinent to insurance operations to explain why a company is a good risk as they use the insights into driver behavior to paint a picture of a company’s safety culture, which can be invaluable in the event of an accident.
“This is just my opinion, but if you’re a carrier operating with cameras, and you’re [only] using an outward-facing camera and side cameras, you’re only getting 70% to 75% of the story,” Chrulski said. “There’s another 25% that happens in the cab, and if you need to be able to defend the driver, defend the organization, you need to have 100% of the information.”
Angel Coker Jones is a senior editor of Commercial Carrier Journal, covering the technology, safety, and business segments. In her free time, she enjoys hiking and kayaking, horseback riding, foraging for medicinal plants and napping. She also enjoys traveling to new places to try local food, beer, and wine. Reach her at An********@***********ly.com.
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How Dealers Can Better Understand Their Customers
How Dealers Can Better Understand Their Customers
Guest writer Debbie Frakes shares a blog this week to further highlight the importance of the customer satisfaction survey in, “How Dealers Can Better Understand Their Customers.”
One of the most powerful tools that equipment dealers have at their disposal is customer satisfaction surveys. They are the best method for understanding what you are currently doing very well and where you need to improve. These surveys provide insights into what your customers think about your products, services, and processes, and they will uncover any issues that need to be addressed.
How customer satisfaction surveys will benefit your business
If you’re on the fence about conducting customer satisfaction phone surveys, consider the statistics. Dealerships that regularly survey their customers typically see a 30% to 40% increase in customer retention compared to those that don’t. The reason is that the dealers who conduct surveys can fine-tune every aspect of their business—whether it’s equipment service, sales, rentals, or parts—by quickly solving problems as they hear about them from their customers through surveys.
Phone surveys by an outside company help you pinpoint points of stress or difficulty before customers decide to take their business elsewhere. Often, customers with recurring issues won’t voice their concerns directly; they’ll just leave. However, when a third party contacts them by phone to ask about their experience, customers provide candid feedback.
Why conduct surveys over the phone?
Phone surveys are particularly effective for gathering customer feedback, because they generally yield better response rates than email surveys. Our partner Winsby, for example, reaches a customer on every third call, and 97% of those they reach agree to participate in the survey. That’s a far cry from email surveys, where a 2% response rate is considered good. Another advantage of phone surveys is their interactivity; customers can elaborate on their concerns, and the caller can ask follow up questions. With email surveys, it’s often unclear whether the recipients even read the questions!
It’s also a good idea to use an external party to conduct the surveys, rather than someone at your dealership. Customers are usually more forthcoming with an outsider, and they may feel more comfortable discussing issues with someone they haven’t worked with directly.
How customer satisfaction surveys work
Our partner, Winsby, conducts phone surveys for many different equipment dealers across the country. Their first step is to create a calling script tailored to the key areas that matter most to your customers. For equipment dealers, these areas often include things like service responsiveness, parts availability, rental equipment performance, and new machine delivery time.
Once your script is ready, a specific number of customers are surveyed each month. That number is typically 10% of the number of invoices for the month for individual customers. Their callers then record all responses and promptly follow up on any negative feedback. Finally, they will communicate any issues identified to the relevant departments at the dealership quickly, so they can make it right with the customer and correct the situation to avoid recurring problems.
Winsby’s customer satisfaction surveys will help you improve every area of your business, retain customers that you are at risk of losing, and build stronger relationships with the companies you work with. It’s all about discovering problems and fixing them before they escalate and turn into customers leaving and speaking negatively about your dealership.
Contact Winsby today to start conducting customer satisfaction surveys!
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Beyond the Annual Review: Emphasizing Continuous Feedback
Beyond the Annual Review: Emphasizing Continuous Feedback
Guest writer Kurt Pease offers a blog on how to lead in your business in, “Beyond the Annual Review: Emphasizing Continuous Feedback.”
For years I dreaded my performance annual review, fearing a negative evaluation. I worked hard throughout the year, but due to a lack of timely feedback, I was uncertain if my efforts were aligned with the company’s goals. What once were lofty goals outlined at the beginning of the year often become overshadowed by the daily whirlwind of urgent tasks and responsibilities. To be blunt, I found that annual reviews were outdated and ineffective.
As I transitioned into management roles, I quickly realized that a fundamental change was imperative. Instead of relying on infrequent yearly evaluations, I knew we needed to embrace ongoing conversations and collaboratively set achievable goals with my team. This shift not only enhances accountability but also fosters deeper engagement among team members. At the end of my career, I felt that I still had work to do, but the following changes helped me feel better about this important responsibility.
One of the first lessons I learned in this process is the critical importance of employee buy-in. Goals set from the top down, without input from those who will be working to achieve them, are often met with resistance. By actively involving employees in the goal-setting process, we foster a culture of ownership and accountability. When team members feel their voices matter, their commitment to the goals increases significantly. It’s not just about compliance; it’s about a shared vision that everyone feels invested in.
Another crucial step in this journey was breaking down broad company objectives into specific, actionable items for each employee. Clear alignment between individual and organizational goals ensures that every team member is striving towards a unified purpose. For instance, instead of setting a vague target like “increase revenue,” we worked on specific, measurable goals, such as “acquire four new customers per month.” This clarity provides a roadmap for success and helps team members understand how their contributions affect the bigger picture.
I started placing monthly one-hour appointments on my team’s calendars. Regular one-on-one meetings serve as a vital platform for open communication between me and employees. These meetings offer an opportunity to address challenges as they arise and allow for timely updates on progress toward goals. Instead of waiting for an annual review, team members can receive ongoing feedback, making performance management a daily part of our work culture.
Through these discussions, we have transformed performance management from a daunting event into a constructive and growth-oriented process. Employees feel more comfortable expressing their concerns and seeking guidance, which ultimately leads to better performance outcomes.
To ensure that meaningful progress is being made, it’s essential to document conversations and track goal progress over time. Not only does this create accountability, but it also helps us visualize how we are moving towards our objectives. Utilizing project management tools like Trello has allowed me to effectively manage my team’s projects while providing a clear picture of collaborative efforts. I wished I had utilized this platform much earlier in my career. Not only did it help me become a more efficient manager, but also helped me become a highly organized employee. For example, during my own one-on-ones with my supervisor, having visibility into progress has been immensely beneficial. Together, we prioritize activities based on what’s most pressing, ensuring that we are making the best use of our time and resources. This transparency is crucial in fostering a collaborative team environment.
One of the most significant shifts in my approach is the understanding that goals should be dynamic rather than static. As the business landscape evolves, so should our objectives too. Regularly reviewing and adjusting performance targets ensures that they remain relevant and challenging. This flexibility allows us to experiment and innovate, adapting our strategies to meet changing circumstances.
Encouraging an adaptive mindset promotes resilience within the team, empowering employees to pivot when necessary and explore new pathways to success.
Conclusion
By embracing continuous feedback and collaborative goal setting, I felt that I cultivated a work environment that is more engaged, productive, and fulfilling. The journey from annual reviews to a culture of continuous feedback and collaboration has been transformative, highlighting the importance of nurturing relationships and fostering a sense of ownership among team members. This proactive approach not only enhances performance but also helps create a positive workplace culture where employees feel valued and inspired to excel.
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